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S.US
id: 753

SentinelOne, Inc. (S) IPO Misleading Case

N.D. California
Court
4:23-cv-02786
Case number
06/01/2022
Class period Start
06/01/2023
Class period End
08/07/2023
Lead Plaintiff motion deadline
  • SentinelOne reported financial results missed estimates, cut previous guidance, and restated annualized recurring revenue.
  • $S fell 35.14%, to levels 61.6% below the IPO price.
  • Investors suspect SentinelOne & its Leaders of misleading.
On June 1, 2023, SentinelOne (S) reported Q1 revenue of $133.4 million, missing consensus estimates by $3.21 million. In addition, the Company cut its previously issued 2024 revenue guidance from a range of $631 – $640 million to a range of $590 – $600 million.

  • SentinelOne also revealed that it had restated its annualized recurring revenue (“ARR”) “as a result of a change in methodology and correction of historical inaccuracies,” leading to “a one-time adjustment to ARR of $27.0 million or approximately 5% of total ARR,” as well as an adjustment to “ARR for the prior period in fiscal 2023 . . . based on the same percentage adjustment rate identified in the first quarter of fiscal 2024.”
  • In a letter to shareholders discussing the results, Company management also revealed that it would “implement a workforce optimization plan that is expected to impact approximately 5% of our current employees”.
On this news, SentinelOne’s stock price fell 35.14%, or 61.6% below the IPO price.

On June 30, 2021, SentinelOne conducted its IPO, selling 35 million shares of its Class A common stock at $35.00 per share for more than $1 billion in gross offering proceeds.

Taking all representations, previous guidances, and consequent results into account, Investors have reasons to suspect SentinelOne and its Leaders of misleading statements.
Case Status
Motion to dismiss
Alleged Offence
Misleading Statements, 
Financial Misrepresentation, 
Failure to Disclose, 
Omissions
Suspected Party
Directors, 
Management, 
Shareholder, 
Investment Bank, 
Service Provider
Security Type
Stocks
Trade Direction
Long
Shock Event Date
06/01/2023
Filing date
06/06/2023
Lead Plaintiff Deadline
08/07/2023
Judge
Hon. Judge Haywood S Gilliam, Jr
Collecting participants…